By Srinivas Chowdary Sunkara // petrobazaar // 20th January 2020.
Brent oil futures for March delivery rose 23 cents to $64.85 on London based ICE Futures Europe exchange while West Texas Intermediate futures prices to be delivered in February edged up 2 cents to $58.54 a barrel on NYMEX. In Shanghai, Crude oil main contract futures prices rose by 1.7 Yuan or 0.37% at 464 Yuan/barrel while MCX crude futures for Feb delivery closed Rs.16 down at Rs.4162 on late week. Brent traded at a premium of $6.31 over WTI during the session.
The World Crude oil benchmark price indexes moved steadily during the last week and registered a weekly loss for the second week in a row. The global oil indices opened last week in a bearish mood continuing previous week's losses since the market shifted the focus from geo-politics to supply-demand concerns. U.S-China signing the first phase of trade deal was the big event which could not lift the market since that factor was already priced in but the China's commitment over massive U.S oil purchases contributed to the oil market's muted response to the deal. However, Weekly numbers and U.S-Mexico-Canada free trade deal extended some support to oil complex, IEA's bearish view over the oil market for the year 2020 capped the gains. The market participants are skeptical over the fall of the U.S-China trade deal that countered the demand prospectus from China's refinery through put numbers. I dont find any clues to bulls as of now. Good day to all.
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